How Tenneco manages energy productivity

Tenneco's energy-management investments are intended to improve energy productivity, and are reported in terms of avoided costs in a way that highlights the energy value of conservation projects. This accounting approach helps management see that the return on conservation projects has increased faster than the rate of inflation. Tenneco's pursuit of higher productivity extends to labor, capital, and materials as well as energy resources. Data collection is the first step, followed by a ranking of possible projects. Continuous monitoring and energy use figures from each plant track the trend of energy value over time. Specific projects at Tenneco's energy-intensive operations of refining, shipbuilding, and food processing illustrate the company's energy management program. (DCK)